Innova Active High Growth Portfolio (P)

November 2025

Performance Table

1MTH3MTH6MTH1YR3YR (PA)5YR (PA)INCEPTION (PA)
Innova Active High Growth Portfolio (P)-0.04%2.07%7.29%8.10%--11.66%
FE Peer Group High Growth-0.74%1.39%6.97%8.72%11.26%9.22%12.81%
Excess Returns0.70%0.68%0.32%-0.62%---1.15%

Portfolio Performance

November proved challenging for equity markets. However, a clear rotation was evident from higher-growth sectors toward cheaper parts of the market, as valuation concerns became more important for investors. Interest rate markets also diverged sharply over the month, with Australia now pricing in two rate hikes for 2026, while the US is expected to continue cutting interest rates into 2026. Retail investor participation in US equity markets has risen sharply, which has historically been viewed as a more cautious signal. At the same time, company earnings data shows growing optimism around AI-related earnings in 2026, and broader macroeconomic and liquidity conditions remain supportive for risk assets heading into 2026. Performance within the Magnificent Seven has also begun to diverge, with only Nvidia, Tesla and Google outperforming the broader S&P 500 in 2025.
Innova portfolios significantly outperformed their benchmarks in November, supported by tactical positions in value equities, both globally and domestically, as well as another strong month for the silver bullion ETF. Australian equities fell 2.64% over the month, with rising interest rates acting as a key headwind. Bank stocks sold off sharply, led by CBA, which declined by around 11%. Global developed equities performed modestly better, with the MSCI World Index up 0.17%, while emerging markets lagged, with the MSCI Emerging Markets Index down 1.42%.
Within fixed income, Australian government bonds were the clear underperformer, as 10-year yields rose sharply to around 4.8%, driving price declines across interest-rate-sensitive domestic bonds. In contrast, global hedged fixed income was more resilient, and domestic floating rate notes remained relatively stable. The Australian dollar was volatile, though since November 22 it has moved sharply higher to above 0.66, reflecting a widening interest rate gap between Australia and the US, with markets pricing further hikes in Australia and rate cuts in the US.

Asset Allocation Exposure

Breakdown pie chart
Global Shares41.27%
Australian Shares36.23%
Real Assets8.90%
Alternatives6.40%
Fixed Interest4.48%
Cash2.72%

Top Portfolio Holdings

DNR Capital Wholesale Australian Equities High Conviction
19.19%
Realindex Wholesale Australian Share
13.04%
Colonial First State Wholesale Index Global Share
11.07%
GQG Partners Global Equity - Hedged
10.11%
Realindex Wholesale Global Share
9.81%
Aspect Wholesale Absolute Return
6.40%
Fidelity Global Future Leaders
6.07%
Resolution Capital Wholesale Global Property Securities
5.74%
Fidelity Wholesale Asia
4.21%
CFS Index Australian Share
4.00%

Growth of $100,000 since inception

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Please note Benchmark performance is priced daily.

Market Outlook

2025 has exceeded expectations across several fronts, including continued investment in AI and data centres, easing global tensions following early-year tariff announcements, and multiple rate cuts that have helped markets rotate towards more cyclical sectors. What was once viewed as a year of US exceptionalism has instead seen returns broaden meaningfully, supported by a weaker US dollar, stronger performance from emerging markets, global value equities, precious metals, and select undervalued companies linked to the AI supply chain.
US inflation has stalled around 3%, while the labour market has weakened, particularly in cyclical sectors such as manufacturing and construction. Although asset prices sit at all-time highs and the economy appears increasingly fragmented, monetary policy is becoming more supportive and government spending remains expansionary heading into 2026. In this environment, remaining diversified and neutral on risk appears prudent, given limited risk premium in equity markets and slightly elevated uncertainty. Key risks into 2026 include the ability of the Magnificent Seven to sustain investment-led growth for the US economy, whether the recent easing in global tensions holds,, and the US Federal Reserve’s scope to continue cutting rates with inflation near 3%.
Outside the US, conditions have been more encouraging. China has seen meaningful credit expansion and improved export growth, while Australian economic and retail data have strengthened, despite ongoing inflation pressures. In contrast, Japan and Europe may face headwinds in 2026, with policy rates likely to remain on hold or rise and rising Japanese bond yields renewing concerns around carry trade risks.
Overall, this environment supports a selective approach to risk, favouring economically sensitive assets with reasonable valuations. As liquidity improves and fiscal concerns persist, hard assets such as REITs, infrastructure, and commodities may become more attractive into 2026. We continue to favour regions which offer better upside relative to downside, supported by lower starting valuations and a base case of softer but still positive global growth, ongoing rate cuts, and inflation remaining elevated relative to pre-pandemic norms.

Investment Objective

To deliver a total investment return in line with the benchmark, after fees, over a rolling eight year period

Key Information

Inception14/12/2022
Management Fee0.00%
Maximum Expected Volatility13.00%
Standard Risk MeasureHigh
BenchmarkRBA Cash Rate Target + 5.0%
Model CodeCFSFC005
Investment Timeframe8 years
PlatformCFS FirstChoice

About the Manager

Innova is a boutique portfolio management firm with institutional-grade capabilities that specialises in risk-focused portfolio solutions. Co-founded by Dan Miles and Dinyar Irani in 2010, Innova’s objective is to provide robust investment solutions that work with investor behaviour, rather than against it.

Innova has a comprehensive understanding of investment risk and has developed a proprietary risk management framework based on rigorous academic research to support their investment process. Their quantitative framework acts as the compass, with their experienced investment team determining the best approach to execute this outcome. Innova's systematic approach to portfolio construction has enabled them to navigate global markets successfully, even during challenging market cycles.

Innova has consistently adhered to their investment process across all market regimes. They have rigorously tested their process and analysed hundreds of historical data sources to ensure they always have conviction in their investment decision making. As a result, Innova is able to consistently manage portfolio risk during market downturns and their performance track record is a testament to the effectiveness of their approach.

Important Information

This document has been prepared by Innova Asset Management Pty Ltd (Innova), ABN 99 141 597 104, Corporate Authorised Representative of Innova Investment Management, AFSL 509578 for provision to Australian financial services (AFS) licensees and their representatives, and for other persons who are wholesale clients under section 761G of the Corporations Act.
To the extent that this document may contain financial product advice, it is general advice only as it does not take into account the objectives, financial situation or needs of any particular person. Further, any such general advice does not relate to any particular financial product and is not intended to influence any person in making a decision in relation to a particular financial product. No remuneration (including a commission) or other benefit is received by Innova or its associates in relation to any advice in this document apart from that which it would receive without giving such advice. No recommendation, opinion, offer, solicitation or advertisement to buy or sell any financial products or acquire any services of the type referred to or to adopt any particular investment strategy is made in this document to any person.
All investment involves risks, including possible delays in repayments and loss of income and principal invested. Any discussion of risks contained in this document with respect to any type of product or service should not be considered to be a disclosure of all risks or a complete discussion of the risks involved. Past performance information provided in this document is not indicative of future results and the illustrations are not intended to project or predict future investment returns.
The performance reporting in this document is a representation only. Innova has used a calculation methodology to simulate the performance of the relevant Investment Program since commencement, net of all fees and commissions at the fund/security level, and gross of other fees and commissions. Simulated performance does not reflect the performance of any specific account. Each account will have its own unique performance history, due to factors including varied methods of implementation, fee and tax structures. Therefore, simulated performance may vary significantly compared to that of any specific account. The out of sample backtested performance data has been simulated by Innova and is for illustrative purposed only, and is not representative of any investment or product, Results based on simulated performance results have certain inherent limitations as these results do not represent actual trading. No representation is being made that any account will or is likely to achieve profits or losses similar to those being shown.
Although non-Fund specific information has been prepared from sources believed to be reliable, we offer no guarantees as to its accuracy or completeness. Any performance figures are not promises of future performance and are not guaranteed. Opinions expressed are valid at the date this document was published and may change. All dollars are Australian dollars unless otherwise specified.

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